Just Group committed to capital self-sufficiency, sees scope for further cost cuts
Retirement products specialist Just Group said on Thursday that it remained committed to delivering capital self-sufficiency by 2022 and will target further cost cuts in its US care business.
In an update ahead of its annual general meeting, the company said its market opportunities remain "attractive", but it is updating its business model in light of regulatory changes.
Just Group said loss-making initiatives such as the US care business and UK income drawdown have been rationalised, with scope for further cost reductions.
"Capital management forms a core driver of management's short term incentive plans for 2019," it said.
The company, which appointed a new chief financial officer on Wednesday, said its chairman is expediting the appointment process for a new chief executive officer.
Just Group, whose share price has performed poorly of late, said all of its directors have recently increased, or are in the process of increasing, their stakes. It said this demonstrates their "confidence in the group's ability to execute on its plan and their belief that the current market price bears no relation to the fundamental value" of the company.
Interim CEO David Richardson said: "We have a good business which is performing well commercially and operationally. We have a strong position in attractive markets and will use these positive market dynamics together with our market-leading expertise to reduce new business capital strain.
"At the same time as developing our strategic and business options, we are sharply focused on using our existing capital base wisely and are committed to achieving capital self-sufficiency by 2022."